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Negotiation Strategies
May 2018
Politics or Prudence:
The Iranian Deal from a Negotiation Perspective
Dear Clients and Friends,

President Trump's recent decision to withdraw from the Iran nuclear deal has been cause for much debate of late.

In this May '18 Negotiation Strategies column, I do not intend to judge the wisdom of the decision from a national security, foreign affairs or political standpoint, but rather to examine it purely from a negotiation scholar and practitioner perspective. 

For your reading convenience, this column is also summarized in the Lessons Learned bullet points at the bottom of the page.

With Best Wishes

Raphael Lapin
Politics or Prudence:
 The Iranian Deal from a Negotiation Perspective
Introduction
President Trump’s decision to unilaterally withdraw from the JCPOA (the Iran Deal), has generated polarized opinions both domestically and internationally. If we look at the decision in the very narrow context of meeting the objectives of restoring American resolve and fulfillment of campaign promises, a strong argument can be made in favor of the decision. 

However, if we examine it in the broader context of the stated desired and warranted objectives (discussed later in this column), the astuteness of the decision becomes more ambiguous.

In this column I do not intend to judge the wisdom of the decision from a national security, foreign affairs or political standpoint, but rather to examine it from a negotiation scholar and practitioner perspective. I will survey the objectives; the potential outcomes and costs; and I will then offer an alternate approach which may potentially have been more constructive in meeting our objectives and beyond.
U.S.Objectives and Likelihood of Achieving Them
When we attempt to catalog the U.S. objectives with regard to Iran, and what President Trump hoped to realize by withdrawing from the JCPOA, we envision a renegotiated agreement that provides for:

  • A verifiable, enforceable and irreversible denuclearized Iran for any foreseeable future. 
  • A cessation of all and any financial, technological or other terrorist support and activity globally.
  • An immediate termination of all proxy wars and their regional support such as in Syria and Yemen.

In examining the potential outcomes and costs of the decision to withdraw from the JCPOA, three possible scenarios emerge:
A comprehensive renegotiation: The best case scenario for President Trump would be if Iran, under the pressure of new sanctions, would come back to the bargaining table “tail between legs”, and succumb to all of his demands. Although this might be the best scenario for the President, it is also the least likely.
Iran scraps the deal: In this scenario, Iran also withdraws from the deal and continues to pursue her nuclear weapons ambitions aggressively. This could potentially create an arms race and cause further instability in the Middle East.
Iran stays in a deal with the other signatory parties: A likely scenario would be that Iran stays in the deal with China, France, Russia, the U.K. and Germany and arranges agreements with them to compensate for any impact of sanctions that the U.S. may impose. This would isolate the United States; weaken her credibility and influence globally; and leave us in no better position with regards to inhibiting Iran’s nuclear ambitions, than we are right now.
An Alternate Approach
From Iran’s current perspective it would seem that not renegotiating with the U.S. is their best alternative, particularly if they can come to terms with the remaining signatories. 

For President Trump to be successful, he will need to change Iran’s calculus and balance sheet of rewards and penalties so that renegotiating will be better for them than resisting. This will require several tactical steps:

Implementation of a broader strategy: When Henry Kissinger, the Secretary of State and National Security Adviser under Richard Nixon, was negotiating the U.S. withdrawal from Vietnam in the 1970’s, he was confronted with an intransigent Le Duc Tho, the North Vietnamese negotiator. Understanding the strong axis of influence between the Soviet Union and China over North Vietnam, he opened negotiations with them first, to obtain their support and willingness to pressure North Vietnam in exchange for concessions. After successful negotiations on those fronts, he was then able to engage a subdued and pressured Tho in the Paris Talks and reach an eventual satisfactory agreement.

Perhaps a place to begin an Iranian strategy is to map out an axis of influence that could pressure and influence Iran. This might involve opening negotiations with Russia, perhaps even linking the relief of sanctions imposed upon them in return for support on the Iranian deal. It may be further necessary to look at an axis of influence that could pressure Europe to assert pressure on Iran. This may require some creative thinking, as often these axes of influence are not obvious and require some rigorous thought and exploration. Unfortunately, instead of a broader strategy of coalitions and influence, the U.S. has chosen to confront Iran directly and alone.

Changing their balance sheet of incentives and penalties: Iran views their current balance sheet as leaning strongly in favor of not renegotiating with the U.S. They can keep the current agreement and relationships with the other countries, which in turn could make the threat of renewed U.S. sanctions less effective. 

For Iran's calculus to change, the U.S. needs to change their balance sheet in favor of renegotiation by increasing incentives and rewards and intensifying penalties. In tandem with the broader strategic implementation outlined above, a target balance sheet for Iran that we should aim for, might look like this:

If we (putting ourselves in Iran's shoes) say “NO” to renegotiation with the U.S.
  • We suffer increased isolation from the western world.
  • We continue to be seen as a rogue and pariah state.
  • We have limited options with other avenues blocked (assuming a broad strategic implementation).
  • We will have severe economic pressure.
  • We will have internal unrest, protests and riots.
  • We may be vulnerable to possible preemptive military strikes from countries such as the U.S and Israel.
  • We will always be fearful of a coup attempt generated by internal and/or external forces.

If we (putting ourselves in Iran's shoes) say “YES” to renegotiation with the U.S.
  • We develop a collaborative relationship and trade partnerships with the West.
  • We become an economic player on the world stage.
  • We can become a recognized power in the Middle East to be reckoned with.
  • We are assured sovereignty and security.
  • We develop a robust nuclear energy program for peaceful purposes.
  • Our economic conditions are improved drastically.
  • We forge strong diplomatic, scientific, agricultural, trade and culture relations with the West.
  • We become recognized as a legitimate state in the world community.

By us re-balancing the deal/no deal calculus that Iran faces, we may just have a greater chance of achieving our objectives.

Conducting secret back-channel negotiations. Even with these tactical steps, negotiations will fail unless they are conducted in secret. This will keep bureaucratic, political and media influences on both sides at bay, and allow for a more open and honest exploration of ideas. The more public bluster there is, the less likely the parties will back down from entrenched positions. This is true of both the proactive axis-of-influence negotiations discussed above as well as the primary negotiations with Iran.

This balance of entente with the axis-of-influence countries and détente with Iran, supported by a balance sheet from Iran's perspective that favors renegotiation, may be a more constructive approach to allowing Iran to have our way!
(To learn more about the Iran-U.S. negotiations see Learning from Our Mistakes in the Iran Nuclear Negotiations )
Lessons Learned
  • When faced with an intransigent counterpart, adopt a broader strategic approach.
  • Map out an axis of influence by considering who might be able to influence them.
  • Be prepared to open negotiations with the axis of influence before negotiating with your primary counterpart.
  • Consider what their deal/no deal balance sheet looks like from their perspective.
  • If it favors a “no deal”, devise ways to change that balance.
  • Think about whether it would be better to conduct the negotiations confidentially and in private.
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